BEIJING, Dec. 7, 2010 /PRNewswire-Asia-FirstCall/ --
AirMedia Group Inc. ("AirMedia") (Nasdaq: AMCN), a leading operator
of out-of-home advertising platforms in China targeting mid-to-high-end consumers, and
China Central Television International Mobile Media Ltd. ("CCTV
Mobile Media"), a subsidiary of China Central Television ("CCTV"),
today announced that they have established a strategic partnership
to operate a TV channel of CCTV Mobile Media ("CCTV Air Channel")
to broadcast TV programs to air travelers in China. The partnership agreement has a term of
15 years until November 28, 2025.
CCTV Air Channel will be run based on AirMedia's network of
digital TV screens in airports and digital TV screens on airplanes.
CCTV Mobile Media will be responsible for program planning,
production, and broadcasting. AirMedia will operate exclusively the
advertising business of CCTV Air TV Channel. Furthermore, according
to the agreement, all advertising revenue generated under this
partnership will be allocated fully to AirMedia.
"We believe the partnership will help us take advantage of
CCTV's tremendous influence to increase the brand awareness of our
TV platform among the mid-to-high-end consumers. In addition, with
the help of CCTV Mobile Media's professional team, we expect to
increase our media value by showing more eye-catching content to
draw air travelers' attention," remarked Herman Guo, chairman and chief executive officer
of AirMedia. "Furthermore, with the sole TV channel approved by the
government in the air sector in China, we believe we will have a better
position to negotiate with airports or airline companies, and to
convince advertisers to spend budgets."
''We are very pleased to partner with AirMedia to provide TV
programs to air travelers in 38 major airports and on the airplanes
of 9 airlines in China," said Mr.
Hua Xie, Content Director of CCTV Mobile Media. "Through AirMedia's
nationwide network, CCTV and AirMedia together will be able to
provide the air travelers with enriched information and high
quality entertainment programs, creating a unique media platform
with great appeal to the mid-to-high-end consumers.''
About CCTV International Mobile Media Ltd.
CCTV International Mobile Media Ltd. is the sole mobile TV
station authorized by State Administration of Radio Film and
Television to provide public media platforms in China with program-integration, broadcast
control and transmission service using the name of CCTV Mobile
Media.
About AirMedia Group Inc.
AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers.
AirMedia operates the largest digital media network in China dedicated to air travel advertising.
AirMedia operates digital frames in 34 major airports, including
the 15 largest airports in China.
AirMedia also operates digital TV screens in 38 major airports,
including 26 out of the 30 largest airports in China. In addition, AirMedia sells
advertisements on the routes operated by nine airlines, including
the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega LED screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2014 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "confident" and similar statements. Among
other things, the quotations from management in this announcement,
as well as AirMedia's strategic and operational plans, contain
forward-looking statements. AirMedia may also make written or oral
forward-looking statements in its reports to the U.S. Securities
and Exchange Commission, in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about AirMedia's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to: if advertisers or the viewing
public do not accept, or lose interest in, our air travel
advertising network, we may be unable to generate sufficient cash
flow from our operating activities and our prospects and results of
operations could be negatively affected; we derive most of our
revenues from the provision of air travel advertising services, and
any slowdown in the air travel advertising industry in China may materially and adversely affect our
revenues and results of operation; our strategy of expanding our
advertising network by building new air travel media platforms and
expanding into traditional media in airports may not succeed, and
our failure to do so could materially reduce the attractiveness of
our network and harm our business, reputation and results of
operations; if we do not succeed in our expansion into gas station
and other outdoor media advertising, our future results of
operations and growth prospects may be materially and adversely
affected; if our customers reduce their advertising spending or are
unable to pay us in full, in part or at all for a period of time
due to an economic downturn in China and/or elsewhere or for any other
reason, our revenues and results of operations may be materially
and adversely affected; we face risks related to health epidemics,
which could materially and adversely affect air travel and result
in reduced demand for our advertising services or disrupt our
operations; if we are unable to retain existing concession rights
contracts or obtain new concession rights contracts on commercially
advantageous terms that allow us to operate our advertising
platforms, we may be unable to maintain or expand our network
coverage and our business and prospects may be harmed; a
significant portion of our revenues has been derived from the five
largest airports and three largest airlines in China, and if any of these airports or
airlines experiences a material business disruption, our ability to
generate revenues and our results of operations would be materially
and adversely affected; our limited operating history makes it
difficult to evaluate our future prospects and results of
operations; and other risks outlined in AirMedia's filings with the
U.S. Securities and Exchange Commission. AirMedia does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
Investor Contact:
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Raymond Huang
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Investor Relations
Director
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AirMedia Group Inc.
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Tel: +86-10-8460-8678
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Email: ir@airmedia.net.cn
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Caroline Straathof
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IR Inside
Tel: +31-6-54624301
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Email: info@irinside.com
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SOURCE AirMedia Group Inc.